Charles Edward Company established a subsidiary in a foreign country on January 1, 2016, by investing FC 3,200,000 when the exchange rate was FC 3.5 to one U.S. dollar. No income was earned and no dividends were paid during that year, nor the next. In 2018, Charles Edward negotiated a bank loan of FC 1,000,000 on January 5, and purchased plant and equipment in the amount of FC 4,800,000 on January 8, 2018. No dividends were paid during 2018. Additional exchange rates per $1 during the year 2018 follow:

January 1-31, 2018	FC 3.15
Average 2018	FC 3.25
December 31, 2018	FC 3.30

The foreign subsidiarys income statement for 2018 and balance sheet at December 31, 2018, follow:

INCOME STATEMENT
For the Year Ended December 31, 2018
FC (in thousands)
Sales	FC	13,5000
Selling expense		(675)
Depreciation expense		(1,200)
Income before tax		11,625
Income taxes		(4,000)
Net income		7,625
Retained earnings, 1/1/2018		0
Retained earnings, 12/31/2018	FC	7,625

BALANCE SHEET
As of December 31, 2018
FC (in thousands)
Cash	FC	8,500
Property, plant & equipment		4,800
Less: accumulated depreciation		(1,200)
Total assets	FC	12,100
Current liabilities	FC	275
Long-term debt		1,000
Contributed capital		3,200
Retained earnings		7,625
Total liabilities and stockholders' equity	FC	12,100

1. Using a spreadsheet, remeasure the foreign subsidiarys FC financial statements into U.S. dollars at December 31, 2018, assuming that the U.S. dollar is the subsidiarys functional currency. Calculate the necessary remeasurement gain or loss that arises because of this remeasurement using the net monetary assets/liabilities approach.